Pete’s Pizza is planning to purchase a new type of oven that cooks pizza much faster than the conventional oven now used. The new oven is estimated to cost $20,000 (use straight-line depreciation) and will have a five-year life, after which it will be traded in for $4,000. Pete has calculated that the new oven will allow him to increase his sales by $30,000 a year. His food cost is 30 percent, labor cost is 40 percent, and other costs are 10 percent of sales revenue. Tax rate is 40 percent. For any new investment, Pete wants a minimum 12 percent return. Use IRR to help him decide if he should purchase the new oven.